Monster Falls as Senators Call for Regulation

Sept. 12 (Bloomberg) -- Monster Beverage Corp., the largest
U.S. energy drink maker by sales volume, fell the most in a
month after two U.S. senators called for greater regulation of
the beverages.

The shares slid 7 percent to $52.42 at 1:05 p.m. in New
York and earlier dropped as much as 7.3 percent for the largest
intraday decline since Aug. 10. Corona, California-based Monster
gained 22 percent this year through yesterday.

Senators Richard Durbin of Illinois and Richard Blumenthal
of Connecticut, both Democrats, wrote the U.S. Food and Drug
Administration urging clarity on whether energy drinks qualify
as dietary supplements, as they are currently marketed, or
beverages, which are subject to greater regulatory scrutiny.

The senators also asked for further study of how energy
drinks affect children’s health and that the agency regulate how
much caffeine can be included in the beverages.

“The FDA currently regulates caffeine levels in soft
drinks,” Durbin and Blumenthal wrote in the letter. “We urge
the agency to assert its regulatory authority over caffeine
levels in energy drinks marketed as beverages.”

Judy Lin Sfetcu, a spokeswoman for Monster who works for
PondelWilkinson Inc., said in an interview that regulators’
interest in energy drinks is industrywide and that the company
has no additional comment.

Monster last month disclosed that an unspecified attorney
general was investigating its flagship drink and ingredients.
New York Attorney General Eric Schneiderman has been
investigating Monster, PepsiCo Inc. and Living Essentials LLC,
the maker of the 5-Hour Energy drinks, a person familiar with
the probe said last month.